Manitoba Premier Gary Doer is hinting his government is set to backtrack on a controversial subsidy for political parties.

The province is looking at changing a law, passed October, that awards parties $1.25 a year for every vote they received in the most recent election.

The subsidy could cost taxpayers just over $500,000 a year, with almost half going to Doer's NDP.

"It's becoming a distraction," Doer said Thursday. "We have other things to be focused on with this economy."

Doer has been under fire from the Progressive Conservatives, who have promised not to collect their share of the subsidy.

"We just don't think it's necessary, we don't think it's right, to force people to contribute through their taxes to a party they might not support," Tory Leader Hugh McFadyen said.

Doer's pronouncement came the same day the federal Conservatives vowed to eliminate the $1.95-per-vote subsidy given to federal parties. He refused to go into detail when asked what changes he had in mind, telling reporters that everything is on the table.

"I do believe in the principle of banning union and corporate donations and supporting particularly other parties in a democracy with partial public financing," Doer said.

"Having said that, we recognize times will be tough in 2009 and we'll judge ourselves accordingly."

Changes before spring

The per-vote subsidy was introduced partly to make up for a ban on corporate and union donations that the NDP imposed eight years ago. But the idea ran into opposition from taxpayer groups and others who called it a tax grab.

Doer told reporters changes could come before the spring budget.

The subsidy was part of an omnibus elections law that also restricts legislature members from using partisan statements in publicly funded brochures and other items that are mailed to constituents.

That part of the bill led to accusations from the Opposition that the government was trying to censor free speech. The Tories put out the battle cry to party members, who signed up en masse to speak at public hearings that ran day and night earlier this year.